Enad Global 7 Ab · OMXSTO:EG7
Enad Global 7 Ab — Q3 2020 Earnings Presentation
22 slides from Enad Global 7 Ab's earnings presentation, Nov 25, 2020
Slide 1: Acquisition of Piranha Games
ACQUISITION OF PIRANHA GAMES Q3 INVESTOR PRESENTATION - NOVEMBER 2020
Slide 2: EG7 in short
EG7 IN S HO R T 829 SEKm TTM REVENUE EG7 is a unique eco-system within the video games industry consisting of: 1. Petrol, the number one gaming marketing agency. o That is why Activision, Embracer, Ubisoft among other repeat clients use Petrol. 2. Sold Out, our publisher that has never had an unprof
Slide 3: EG7 platform: we control the value chain
EG7 P L ATF O R M VALUE CHAIN – WE CONTROL THE VALUE CHAIN DEVELOPING MARKETING PUBLISHING DISTRIBUTING WE TAKE THE COMPANIES WE ACQUIRE TO A NEW LEVEL
Slide 4: Solid track record and pipeline
S O L ID TR A C K R EC O R D A N D P IP EL IN E 160+ PREVIOUS GAME 25+ CURRENT GAME 40+ ONGOING MARKETING PROJECTS 1 PROJECTS 1 CAMPAIGNS 1) Development, publishing, distribution
Slide 5: Releases in 2020
S EL EC TIO N O F G A M ES W E DEV EL O P , DIS TR IBUTE, P UBL IS H A N D M A R KET RELEASES IN 2020 RELEASED RELEASED RELEASED RELEASED RELEASED TO BE RELEASED RELEASED RELEASED
Slide 6: To be released in 2020-2022
S EL EC TIO N O F G A M ES W E DEV EL O P , DIS TR IBUTE, A N D P UBL IS H TO BE RELEASED IN 2020-2022 ”PROJECT HATHOR” 10+ 40+ UNDISCLO SED MARKETING CAMPAIGNS PROJECTS AND RELEASES
Slide 7: History & financials
HIS TO R Y & F IN AN C IAL S +62% Revenue per Year SEK 829.0m (Pro-forma Revenue) Revenue Growth per Year +573% SEK 512.4m (Pro-forma Revenue) Contract worth Consulting in Development SEK 40m with +586% Leyou SEK 76.1m +52% -3% SEK 7.5m SEK 11.4m SEK 11.1m 2015-08 2016-08 2017-08 2018-121 2019-12 TT
Slide 8: History and progress of M&A
HISTORY AND PROGRESS OF M&A We have used SEK 370m in cash for acquisitions which has given us a repeat EBITDA of SEK 152m before synergies. Add-on acquisition X Add-on acquisition 2 Add-on acquisition 1 Acquisition targets become significant shareholders¹ 3.7x EV/EBITDA multiple 4.6x EV/EBITDA multi
Slide 9: Acquisition rationale for EG7
3.7x 60% UP-FRONT EBITDA MULTIPLE EG7 GROUP EBITDA INCREASE SEK 150m SEK 56m TTM REVENUE TTM EBITDA ACQUISITION RATIONALE FOR EG7 AAA GAME PORTFOLIO EXPERIENCED TEAM F2P SYNERGIES SOLID PROFITABILITY
Slide 10: MechWarrior - a strong franchise
MECHWARRIOR - A STRONG FRANCHISE
Slide 11: New IPs added to group
NEW IP’S ADDED TO GROUP 20 NEW IP YEARS ACTIVE NEW IP 70M+ USD REVENUE GENERATED 10K+ DAILY ACTIVE PLAYERS
Slide 12: New combined group
N EW C O M BIN ED GR O UP CURRENT EG7 PIRANHA GAMES COMBINED Video game development and Video game development and related DESCRIPTION Video game development related services services SALES TTM SEK 679 million SEK 150 million SEK 829 million EBITDA TTM SEK 96 million SEK 56 million SEK 152 million O
Slide 13: Divisions
2 DIV IS IO N S GAMES SERVICES • Development of own titles. • Creative marketing studio with 40+ ongoing marketing projects. Previous projects - Call of Duty Warzone, • Five independent studios with unique expertises. Far Cry 6 and Assassins Creed Valhalla. • 10+ own/licensed IPs. • 15+ current proj
Slide 14: Our offices
O UR O F F IC ES BIG BLUE BUBBLE ARTPLANT NORWAY DEVELOPER & PUBLISHER GAME DEVELOPER TOADMAN HQ GAME DEVELOPER PIRANHA GAMES DEVELOPER BIG BLUE BUBBLE ANTIMATTER GAMES ARTPLANT RUSSIA DEVELOPER & GAME DEVELOPER GAME DEVELOPER PUBLISHER PETROL SOLDOUT MARKETING PUBLISHER & TOADMAN BERLIN DISTRIBUTOR
Slide 15: EG7 as an investment
EG7 AS AN INVESTMENT
Slide 16: Q3 recap
Q 3 2 02 0 R EC AP • Net revenue grew by more than 20% compared to Q3 2019. • Raised SEK 429m from several institutional investors to finance M&A strategy. • Several organizational improvements. • Acquisition of Canadian game developer Big Blue Bubble. • Several game releases, one of which was No St
Slide 17: Next logical steps for EG7
KEY IN V ES TM EN T HIGHL IGHTS NEXT LOGICAL STEPS FOR EG7 1. 2. 3. M&A PIPELINE GAMES TO BE RELEASED COMPLETE ECO-SYSTEM M&A pipeline is stronger Our pipeline of 10+ games Now that the eco-system is than ever. to be released, including complete, we are very million copy sellers like IGI, excited ab
Slide 18: Aligned incentives between management and investors
AL IGN ED IN C EN TIV ES BETW EEN M AN AGEM EN T AN D IN V ES TO R S SHAREHOLDER1 TYPE OF INVESTOR SHARES CAPITAL % Robin Flodin CEO & Co-Founder 3,817,713 8.60% Dan Sten Olsson with Family and Trust Investor, Represented on Board Level 3,625,000 8.16% Rasmus Davidsson Head of Design Toadman Studios
Slide 19: Strong reasons to invest
KEY IN V ES TM EN T HIGHL IGHTS 1. Unique world-class gaming eco-system. 2. Proven shareholder value through acquisitions. 3. Diversified risk through stable cash-flow, low-risk, profitable services division and experienced game development division. STRONG 4. High potential through a games division
Slide 20: Thank you
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Slide 21: Appendix: Income statement - Group
APPENDIX 1 INCOME STATEMENT - GROUP QUARTER ACCUMULATED FY 2019 2020-07-01 2019-07-01 2020-01-01 2019-01-01 2019-01-01 2020-09-30 2019-09-30 2020-09-30 2019-09-30 2019-12-31 (SEKm) 3 months 3 months 9 months 9 months 12 months Net revenue 80.5 66.5 374.0 94.9 151.6 Own work capitalized 10.3 2.6 27.5
Slide 22: Appendix: Balance sheet - Group
AP P EN DIX 2 – BAL AN C E S HEET GR O UP (SEKm) 2020-09-30 2019-09-30 2019-12-31 ASSETS Non-current assets Intangible non-current assets 456.2 211.9 510.2 Tangible non-current assets 7.9 7.8 9.0 Financial non-currents assets 2.2 1.3 2.5 Total non-current assets 466.3 221.1 521.7 Current assets Inve